Microsoft’s “Neutral” Rating Reiterated at Zacks (MSFT)
Microsoft (NASDAQ:MSFT)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued on Wednesday. They currently have a $47.00 target price on the stock. Zacks‘s target price suggests a potential upside of 4.43% from the company’s current price.
Zacks’ analyst wrote, “Microsoft is one of the largest software companies in the world. Its operating systems are installed on the majority of computers anywhere in the world. It is also a leader in the emerging cloud computing market. Fiscal fourth quarter 2014 earnings missed the Zacks Consensus Estimate. The reorganization of the business and “cloud-first mobile-first” focus are encouraging, but execution risks are considerable. Additionally, competition remains stiff and Microsoft’s dominant position in the PC market continues to be challenged by new-age devices. However, considering the fact that the enterprise refresh cycle, new subscription model, Azure and promising new products will continue to generate sizeable cash flows, we are reiterating our Neutral recommendation on Microsoft shares.”
Several other analysts have also recently commented on the stock. Analysts at Cowen and Company raised their price target on shares of Microsoft from $44.00 to $45.00 in a research note on Wednesday, July 23rd. They now have a “market perform” rating on the stock. Separately, analysts at Credit Suisse reiterated an “outperform” rating on shares of Microsoft in a research note on Wednesday, July 23rd. They now have a $50.00 price target on the stock, up previously from $47.50. Finally, analysts at Deutsche Bank upgraded shares of Microsoft from an “underperform” rating to a “neutral” rating in a research note on Wednesday, July 23rd. They now have a $47.00 price target on the stock, up previously from $35.00. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating and eleven have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $42.28.
Microsoft (NASDAQ:MSFT) traded down 0.23% on Wednesday, hitting $44.90. The stock had a trading volume of 6,656,549 shares. Microsoft has a 52 week low of $30.95 and a 52 week high of $45.71. The stock’s 50-day moving average is $43.76 and its 200-day moving average is $40.83. The company has a market cap of $370.0 billion and a P/E ratio of 17.11. Microsoft also saw a large decline in short interest in the month of August. As of August 15th, there was short interest totalling 86,181,905 shares, a decline of 3.6% from the July 31st total of 89,401,631 shares. Currently, 1.1% of the shares of the company are sold short. Based on an average daily volume of 27,385,733 shares, the days-to-cover ratio is presently 3.1 days.
Microsoft (NASDAQ:MSFT) last released its earnings data on Tuesday, July 22nd. The company reported $0.52 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.61 by $0.09. The company had revenue of $23.38 billion for the quarter, compared to the consensus estimate of $23.11 billion. During the same quarter last year, the company posted $0.59 earnings per share. Microsoft’s revenue was up 17.5% compared to the same quarter last year. On average, analysts predict that Microsoft will post $2.72 earnings per share for the current fiscal year.
Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services.
To view Zacks’ full report, visit Zacks’ official website.
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